Thursday, June 21, 2012

Fiat money creates big govt.

The data show that Govt (and of course, economic problems) grows enormously ever since the creation of Fed (the current US central bank and the 3rd central bank of US. The first 2 failed).

(All figures in billions)
Year 1800 --- GDP $0.476 --- Govt size $0.01 --- govt size as % of GDP 2.1%
Year 1850 --- GDP $2.556 --- Govt size $0.04 --- govt size as % of GDP 1.6%
Year 1910 (3 yrs before Fed was created) --- GDP $33.423 --- Govt size $0.84 --- govt size as % of GDP 2.5%
Year 1950 --- GDP 293.7 --- Govt size $44.80 --- govt size as % of GDP 15%
Year 2000 --- GDP $9951.5 --- Govt Size $1788.95 --- govt size as % of GDP 18%
Year 2010 --- GDP $14526.5 --- Govt size $3091.34 --- govt size as % of GDP 21%

These are according to official govt figures... the most recent 2 decades of which have been heavily manipulated. Some really big things are being hidden from their balance sheet. So the actual figures for 2000-2010 are actually far worse than is shown here

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